Q6 - time (2,100 unassigned hours divided by 341.18 hours...

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To determine the possible number of extra Assurance and Audit, Tax, and Valuation and Financial jobs, the unassigned hours available for associates, managers, and partners must first be determined using Exhibit 1. There are 2,100 unassigned hours, 1,500 unassigned hours, and 500 unassigned hours available, respectively. To determine how these unassigned hours can be allocated, a rate must be calculated for each position using current direct labor hours in each job type. In example, for Assurance & Audit jobs, associates completed 170 jobs exhausting 56,000 direct labor hours; therefore, the average number of hours per job was 341.18 (56,000 direct labor hours divided by 170 jobs). Since there are 2,100 unassigned hours available and each job requires 341.18 hours, associates can complete a maximum of 6 additional jobs with their unassigned
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Unformatted text preview: time (2,100 unassigned hours divided by 341.18 hours per job). After doing the same process for mangers and partners for Assurance and Audit jobs, the number of additional jobs that can be completed are 28 and 9, respectively. In order to complete a single job, all three positions are needed. Therefore, the position with the least amount of additional jobs that can be completed will determine the maximum number of additional jobs that can be completed. In the case of Assurance and Audit jobs, the associates determined the maximum number, setting it at 6. For Tax jobs, partners set the maximum number at 38. For Valuation and Financial jobs, both the associates and the partners set the maximum number at 8....
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This note was uploaded on 03/08/2009 for the course ACCT 250B taught by Professor Shames during the Spring '08 term at USC.

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